Save My Bacon Ltd Code of Practice
Who is Save My Bacon?
Save My Bacon is a leading online provider of small, short-term loans in the New Zealand market.
Save My Bacon offers loans of up to $1000 for 42 days to permanently employed persons that have a take home pay in excess of $400 per week.
We are a Registered Financial Service Provider and are regulated by the Consumer Contracts and Consumer Finance Act 2003 (CCCFA).
What is our Vision?
To provide a fast, convenient and transparent credit option to New Zealanders that have a pressing need for short-term cash. Save My Bacon is committed to improving the consumers experience in the short-term lending market and establishing new levels of best practice standards for ethical and operational behaviour. The twin objectives of:
- a great customer experience, and
- continuous improvement are embedded into our culture.
We strongly believe that the practices of unscrupulous lenders need to be constrained, and lenders across the financial spectrum need to commit to responsible lending practices.
Our Code of Practice spells out exactly what you as a (potential) borrower can expect when using our service.
Our Core Values
- SMB is an upfront, no surprises loan company. To make our short-term loans easy to use, fair and clear, we always show the total amount repayable upfront before you apply.
- Our fee structure is transparent with no hidden fees or catches.
- We clearly describe the potential consequences and costs of failing to meet payment obligations. In the case of a payment default or late payment you will be made immediately aware of the breach and the seriousness of the situation. Save My Bacon will then work closely with you to bring the loan back on schedule.
- SMB will not charge you default or penalty interest. That is, we will not charge you an interest rate over and above your normal interest rate if your loan is in default.
- If you do default, and your original Loan Term is less than or equal to 31 days we will freeze the interest at 45 days if a suitable payment arrangement can be agreed upon, or after a maximum 60 days if a suitable payment arrangement is not agreed. If your original Loan Term is greater than 31 days we will freeze the interest at 90 days if a suitable payment arrangement can be agreed upon, or after a maximum 120 days if a suitable payment arrangement is not agreed.
- We will never change the interest rate during the life of your small short-term loan.
- SMB doesn't charge you for paying back your loan early so there will be no additional fees charged. You will only pay the interest accrued up to that point. Repay early and save!
- SMB will not take security over your property.
2. Responsible Lending
- At SMB, responsible lending practices are integrated into the full range of interactions with you, including:
- marketing materials
- loan application processes
- disclosure, drafting and layout of lending documentation and subsequent disclosures
- payment processing, collection, and settlement
- loan management and arrears processes, and
- addressing the needs of those in financial hardship.
- At SMB we take our obligations as a responsible lender seriously. We are firmly of the view that loans do not go bad, they start bad.
- In meeting our responsible lending obligations Save My Bacon will:
- Undertake reasonable enquiries to establish your financial requirements,
- Take reasonable steps to verify your financial situation, and
- Make an assessment about the suitability of the contract for you and the affordability of the loan.
- SMB treats this as a positive obligation. Unless SMB believes that you have sufficient regular income available to support the anticipated (re)payment obligations, then the loan will not be approved.
- We will determine your immediate and future credit limit based on in-depth credit and status checks including how responsibly you have used our service before.
- All new customers have a credit check run through Veda Advantage's VedaScore Plus Service. This information is used to assist SMB in making informed decisions about a customer's credit risk and whether the customer is likely to meet their financial obligations under the credit contract â€“ or in the case of a returning customer remains likely to.
- SMB has a number of processes that assess your suitability for an SMB short-term cash loan.
- Provide financial solutions not problems.
- Never sell, encourage or force you to borrow more credit than required.
- Treat all customers fairly and with care, correcting any mistakes quickly and courteously, and compensating you for any reasonable losses we may cause.
- Never encourage you to borrow more than you need, and seek to establish that you can afford to repay considering your ability to meet other expenses or loan repayments. We will conduct credit checks, consider any previous payment history with us, and/or use credit reference and/or specialist data sharing agencies and publicly available data to make our lending decision based on your circumstances, and to guard against fraud.
- Explain in clear language the terms and conditions of our service, and offer help if there is anything that you do not understand.
- Treat all your personal information as private and confidential, and run secure and reliable systems.
- Train our staff to make sure that the procedures they follow reflect the commitments set out in this Code.
- Always show you the total cost of repayment clearly and prominently before you apply for a loan. There will be no hidden fees or charges.
- Clearly explain the costs and consequences of late or non repayment. If your circumstances change for the worse, and repayment cannot be made in full on the contracted date(s) we must be contacted before payment is due. We may charge a default fee and take recovery action if you do not repay on time and have failed to contact us before the repayment date to make mutually agreed upon alternative arrangements.
- Consider cases of financial difficulty sympathetically and positively.
- Only engage experienced 3rd party collection agents who always seek to reach a practical and positive solution for both you and SMB.
- Give you a reason why, if we cannot offer you a loan.
- Assess applications in our usual manner if you request a further loan. A successful application for one loan is not an indication that a further loan will be guaranteed.
4. Responsive and Proactive
- You can use our Online Calculator to decide exactly how much cash you wish to borrow and how many days you require it for.
- Our loan application process is fast and convenient. You receive a pre-approval decision in minutes and once your loan has been formally approved, SMB will make payment to your bank within 60 minutes.
- We will remind you of your responsibilities, the amount owed and the repayment date(s) agreed under your loan contract over the life of your loan.
- Repayment is simple with Save My Bacon. Just make sure the required cash is available in your bank account as agreed in time for the repayment date/s. That's it! The total due will then be deducted from your bank account automatically, on the repayment date/s.
- We make it easy for you to contact us during office hours: via the website, email or phone.
- We are a Financial Dispute Resolution (FDR) member, so you can register a complaint with them if you have already contacted us and feel we have not responded to your concerns or resolved the matter fairly: www.fdr.org.nz.
The type of credit is not intended to meet your long-term financial needs or to be used for dealing with existing ongoing financial problems.
This loan should only be used to meet short-term cash needs and not be used as a continual source of credit.
If you are concerned that you are falling into a bad debt situation, then please do not apply for a Save My Bacon loan as our loan will only worsen your situation.